Suntrust Home Developers, Inc. will be injecting $82 million more for its hotel and casino project, while it entered into a separate deal to borrow P7.3 billion for the same project.
The company told the stock exchange, Friday, that it entered into a fifth supplemental agreement with Westside City Resorts World, Inc. to pay the additional fund, on top of the initial deposits of $20 million and $46 million, on or before July 31. The amount forms part of its payment for its five-star hotel and casino project in Parañaque.
Suntrust expects to have until Dec. 31 to raise at least $300 million for the construction and development of the said project.
Westside would have to pay back the deposits if the terms of their co-development deal would not be met by end-December. If it fails to do so, these will incur a 6% per annum rate interest.
In a separate disclosure, Suntrust said it is borrowing P7.3 billion with a 5.25% annual rate from Fortune Noble Ltd. which will be used to finance its project.
To recall, the company entered into a deal with the Hong Kong-based firm, which will subscribe to the former’s P7.3-billion convertible bonds that can either be turned into 6.64 billion common shares, representing about 47.79% of Suntrust’s enlarged issued share capital, or debts.
Meanwhile, Suntrust also finalized a deal extending to Dec. 31 the completion of Fortune Noble’s subscription to the company’s 2.55 billion shares. In October last year, the Suncity Group Holdings, Ltd.’s wholly owned subsidiary bought 51% of the latter’s stake.
Shares in Suntrust grew 2.54% to close at P1.21 each on Friday. — Adam J. Ang
